The safest car is one that can't drive, and the most privacy-friendly software will fail to compile. You should be able to build a functional car before you need to worry about making it as safe as possible, and similarly you should be able to build a functional MVP of your software before you need to worry about compliance with a huge international policy.
Before you are permitted to use your DIY car you need to comply with safety regulations to avoid harming others. You can keep your unsafe car off the street in your garage, though. Same for software that is not compliant; you just don't get to call it a "product" and let it loose on the public.
you can drive your unsafe car on the track, and your negligent mvp on your customers own hardware as in-house software.
Great point about VW btw, I forgot about that !
A one person entrepreneur might not consider him/herself to be "being in the webservice business". Instead he/she would consider being in the business of [whatever problem the MVP is trying to solve]. It just hapens that in the 21st century, most of innovation happens online.
Back to your car analogy, it seems that people on one side argue that all companies "being in the webservice business" are 'car makers'. some people on the other side of the argument might say it's not.
Also, ultimately, it's possible that after spending a lot of time and hours examining the legal requirements of GDPR, a startup realizes it's not technically hard to comply, but the issue here isn't implementing the requirements, it's more about getting all the legal analysis, certification, handling customers requests, etc.
> If you disagree, should the US also stop prosecuting VW for the diesel cheating?
In that case, VW has clearly been in the car business for much more than 2 years, and in my example "X users", a good value for X would be something order of magnitudes less than the number of VW customers around the globe. So no, the US would continue prosecuting VW.
"We are a startup on a shoestring budget, we can't put safety belts in our cars!!!"
The cost of being in the car business is to build safe cars. The cost of being in the webservice business is to protect userdata.
If you can't, you are not good enough to be allowed on the market.
If you disagree, should the US also stop prosecuting VW for the diesel cheating?